Beginnings

Elmer J. Faucett had been sent to Peru as a representative of the Curtiss Export Company, arriving in the country from the United States in 1920.^[2]: 470 In 1928, he and a group of Peruvian business men joined to found the first commercial airline in Peru, and one of the first in Latin America.^{[3][unreliable source?]} With an initial investment of £2,500,^[2]: 471 the company was formed on 15 September 1928, and started operations on 27 September that year.^[4] In 1937, the airline absorbed Compañía de Aviación Peruana SA from Panagra.^[5] At April 1938 (1938-04), the route network was flown with seven planes manufactured by the Stinson Aircraft Company, and included Chiclayo, Ica, Lima, Sabados and Talara.^[6]

Postwar operations (1945-1960)

Having their initial investment increased to £200,000 by 1943, Elmer Faucett bought a large number of aircraft from the United States in 1945.^[2]: 471

By May 1952 (1952-05), the airline flew a route network that was 3,000 miles (4,800 km) long.^[7] Faucett carried 136,456 passengers in 1955, and at year end the company had 307 employees.^[8]

By March 1960 (1960-03), the airline had a fleet of eight DC-3s, four DC-4s and four Faucett Stinson F-19s to serve a route network that was 6,368 miles (10,248 km) long.^[9] A second-hand Douglas DC-6B acquired from Panagra was incorporated into the fleet in the early 1960s.^[5][10] Another DC-6B was acquired in late 1964, and was converted to DC-6B(F) standard with a large rear freight door.^[11] This was operated on cargo services to Miami, Florida.

1970s-1980s

In 1973, Faucett was owned by Peruvian interests (46%), the Fundación Faucett (35%) and Braniff International Airways (19%).^[12] The cargo-only airline Aeronaves del Peru became Faucett's biggest shareholder in 1982.^[13]

1990s: Decline and final years

The 1990s economic liberalization under Alberto Fujimori, after years of economic and political chaos (as well as a violent Maoist insurgency), brought a series of measures aimed at the privatization and deregulation of the airline market. A series of short-lived airlines sprung up during this decade (in the style of Russian Babyflots), state-owned Aeroperú was partly sold to Mexican investors and the rise of low-fare Aero Continente as the biggest domestic airline, contributed to the slow decline of Faucett. A series of high-profile accidents, especially Faucett's crash in Arequipa and Aeroperú Flight 603 (both in 1996) affected the safety reputation of the Peruvian airline industry, with the US Embassy in Lima banning their employees from flying on Aero Continente and, more broadly, advising caution to US citizens flying on Peru's airlines.^[14]

In the end, problems with the economic-financial structure of the airline (with debts even with CORPAC for airport services), forced it to cease operations on 3 December 1997. Despite claiming that the 45-day closure would be temporary until government approval, all 1,250 employees were dismissed. Faucett incurred over US$1 million in debt.^[15] By 1998, the former directors and employees were engaged in legal battles over labor and management issues, as well as accusations over bankrupting the company.^[16] The airline was liquidated in 1999.^[17][18]